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Bank of Canada raises interest rate to tackle inflation

Bank of Canada raises interest rate to tackle inflation

By م.زهير الشاعر

Published: March 2, 2022

The Bank of Canada raised the target key interest rate for the first time since cutting the benchmark rate to its lowest level at the start of the COVID-19 pandemic.
 

The central bank raised the key interest rate by a quarter of a percentage point to 0.5 percent in an attempt to help combat inflation, which has risen to its highest level since 1991.

The Monetary Policy Committee of the Bank of Canada decided to raise the interest rate by 25 basis points to 0.50%.

The increase is expected to prompt the country's major banks to raise their prime lending rates, a move that would increase the cost of loans such as variable-rate mortgages linked to the index.

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